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What Makes Real Estate A Profitable Investment Bet?

  • By admin
  • April 10, 2023
  • Blog

Real estate has traditionally been one of the most secure long-term investments, not only for growth but also for building a safety net for your family.

The re-emergence of the real estate industry following the pandemic has been one of the most revealing success stories for the Indian economy’s growth. Stamp duty rate reductions, low-interest rates, and customers investing their accumulated savings have resulted in the industry’s overall recovery. While it is important to diversify one’s portfolio with investments in equities, mutual funds, retirement plans, and so on, one should make a real estate investment as soon as possible to reap long-term benefits. 

As we’ve discussed above the gist of realty investment’s positive benefits, here’s a deeper insight into what makes it profitable. 

Guaranteed Rentals in Real Estate 

Whether you own residential or commercial property, having guaranteed monthly rentals is a great way to generate a good return on your investment. It allows you to avoid market volatility with agreements spanning from one to five years. Rental returns may not be large, but they are consistent and predictable, which is always favourable.

Home Loan Interest Rates Are Low

Home loan interest rates vary according to credit tenure, While the RBI has raised repo rates twice in recent months, current interest rates remain relatively low. This makes now an excellent time to invest in real estate, as interest rates are expected to rise over the next 12-24 months. Customers can avail amazing deals due to the ongoing interest rates.

A Buyer’s Market Sector

Undoubtedly we are currently in a buyers’ market with property prices having corrected slightly, interest rates remaining relatively low, and developers launching competing offers, now is an excellent time to be a customer. Developers are going out of their way to clear out all of their current inventory so that they can focus on launching new projects. Even in the MMR locations, developers are building Property in Thane.

RERA and Its Positive Impacts

The introduction of the Real Estate Regulatory Authority (RERA) provided the real estate sector with a vital image transformation, reshaping it into a much more seamless and buyer-friendly ecosystem. The regulatory body guarantees that customers receive all available information of the developers and their projects, as well as completion and delivery timelines. The ease of access to information regarding project approvals and customer-centric legislative processes has increased market and buyer confidence. Along with RERA, a strategic streamlining of approval processes has helped boost the confidence of local and NRI investors, accelerating the sector’s growth.

And Lastly Tax Benefits…. 

Real estate investments also provide numerous tax advantages to investors, particularly if the home is purchased with a loan. Ideally, section 24 allows investors to assert exemptions on home loan interest payments. Furthermore, Section 80C allows investors to presume tax benefits on principal repayment as well. Besides that, if you are a first-time homebuyer, you can save up to Rs. 1.5 lakh on the principal amount under Section 80 EEA and under Section 24 up to Rs. 2 lakh on the interest payable. These tax breaks can help you save money and make the investment more economical. 

Real Estate Investment for a large number of years has been proven to be a beneficial form of investment for great returns. Now talking about investment in this sector, we always think about putting our money in worthwhile spaces of credible developers. Raymond Realty has a legacy of being credible for decades and now after paving the way into the realty world, the brand is set to offer an unparalleled lifestyle experience with their projects; Ten X Habitat Thane and The Address by GS both located in the locales of Thane. With modern amenities, great designs, and spacious flats in Thane, It is for sure an opportunity you wouldn’t want to miss out on! So take the first step towards your dream luxury flat in Thane pronto!

Source:  NAREDCO